APA Group Signs Landmark Deal with Incitec Pivot

APA Group (ASX:APA) announced it has reached a landmark agreement with Incitec Pivot Limited (ASX: IPL). The contract, which will start on the commencement of commercial operations on the Northern Gas Pipeline, will deliver gas from the Mereenie field in southern Northern Territory, to IPL’s fertiliser plant at Gibson Island, Queensland, through some 3,300km of gas pipelines, the majority of which is APA’s East Coast Grid.

Managing Director Mick McCormack said, “IPL is a foundation customer of APA and it is very pleasing to help an industrial customer, particularly one with an almost 100 year history of manufacturing in Australia.

“APA  have been able to help make this deal happen, not only through our investment in developing the East Coast Grid over many years, but also because we have worked very closely with IPL to understand and then meet their needs by providing services in a market which is currently in tight supply.”

This unique and innovative solution for IPL will help see the Gibson Island plant continue to operate and contribute to the Australian economy, importantly maintaining jobs for Australians. “I am extremely pleased to say that APA has yet again been able to provide a cost effective and flexible service to one of its key customers. We are always looking to add value for our customers to assist them in optimising their energy requirements,” said Mr McCormack.

The transportation agreement is for an initial term that concludes 1 January 2020, with an extension option. Gas will be received on APA’s Amadeus Gas Pipeline at Mereenie, then transported via the Northern Gas Pipeline, to enter APA’s East Coast Grid at Mount Isa. From there, it will travel via the Carpentaria Gas Pipeline, the South West Queensland Pipeline and the Roma Brisbane Pipeline to finally reach IPL’s plant near Brisbane, Queensland.

Mr McCormack said, “By helping our customers with smart and flexible solutions that assist them to meet the requirements of their own customers and energy portfolios, we continue to support our significant investment in bringing together the East Coast Grid. We’re a growth business and we grow as our customers businesses grow. Currently, APA is in the midst of around $1.3 billion plus of further committed growth capital projects, the vast majority of which are for existing customers wanting new energy solutions.”


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s